Fiber laser manufacturer IPG Photonics (NASDAQ: IPGP) will be announcing earnings results this Tuesday morning. Here’s what to expect.
IPG Photonics beat analysts’ revenue expectations last quarter, reporting revenues of $265.5 million, up 16.6% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ operating income estimates but a significant miss of analysts’ EPS estimates.
Is IPG Photonics a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting IPG Photonics’s revenue to grow 11.7% year on year, a reversal from the 2.7% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. IPG Photonics rarely misses Wall Street’s revenue estimates.
Looking at IPG Photonics’s peers in the semiconductor manufacturing segment, some have already reported their Q2 results, giving us a hint as to what we can expect. FormFactor delivered year-on-year revenue growth of 31.9%, beating analysts’ expectations by 7.6%, and Teradyne reported revenues up 104%, topping estimates by 9.4%. FormFactor traded up 26.3% following the results while Teradyne’s stock price was unchanged.
Read our full analysis of FormFactor’s results here and Teradyne’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the semiconductor manufacturing stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 12.7% on average over the last month. IPG Photonics is down 18.9% during the same time and is heading into earnings with an average analyst price target of $131.93 (compared to the current share price of $85.06).
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